Home Buying Advice - Dept to Income Ratios

Dept to Income Ratio

Your dept to income ratio is a posh name for disposable income. In other words how much money do you have remaining after you have paid your bills. This is a question the lender will be trying to answer in order to determine how much money they are willing to lend you. The result of this calculation is the percentage of your gross income that you have to spend in order to pay your depts.